Lack of real estate in which fund managers could invest leaves record amount of so-called dry powder on funds’ books

Investors are piling money into real-estate funds—but fund managers are finding it a challenge to spend it.

Global fund managers had a record $237 billion available to invest in commercial property at the end of last year, according to data firm Preqin, up from $229 billion at the end of 2015 and $136 billion at the end of 2012.